Could this be a deal?!!

Question

I have a family friend who selling there home, they moved out of state and only want $70,000. The home is in a Blue collar neighborhood and it could sell for $120,000. They currently behind on there mortgage payments $2500 to be exact, that needs to paid next month. They currently have tenants in the home that’s paying $600 monthly and want to continue to live in the home. Rent in the area is around $800-$1,000 market is growing quickly. How would you acquire this property?

Josh Bakhshi · Answer

There is a lot of information missing.  How much do they owe?  What is the mortgage monthly?  Does it include tax and ins?  Why are they renting it for 600?  Why would they sell it for 70K when it is worth 120? How is the condition of the house? Is it professionally managed?  Are you buying cash or financing?

If you tell me that you can buy a house for 70K and turn it around right away for 120K, it sounds GREAT!  But something sounds fishy.

Josh Bakhshi · Answer

Alvonta,

The story still doesn't make sense to me.  If they are still getting $600/month in rent and that is what the mortgage is, why are they 2500 behind (6 months)? If they intended to ignore it as it appears they are, why didn't they put it on the market back in March when the market is most hot? Something still doesn't seem right, but you should go with your gut.  Good luck.

Alvonta Flemings · Answer

@Josh Bakhshi there behind because the seller let her soon live in the home and he trashed it and stop paying so she kicked him out

Alvonta Flemings · Answer

@Josh Bakhshi the mortgage payment is $600 monthly and the owner is selling the home for $70,000 because they moved out of state and doesn’t want to deal with it. They need to sell fast.

Alvonta Flemings · Answer

@Josh Bakhshi there’s roughly $63,000 left to pay on the home. Back in December she was renting it to the tenants for $829 but lowered it to $600 since they did some repairs around the home. I haven’t seen the property yet so I’m not sure on the repairs but I will find out.